Bruce Flatt, CEO of Brookfield Corp., stated on September 17 that the AI industry is slowing down due to infrastructure limitations. According to the firm, the primary bottleneck for AI development is a shortage of electrical power rather than a lack of capital or ambition.
Brookfield projects that the total capital investment required to unlock the full potential of AI over the next decade will exceed $7 trillion. This funding is intended for data centers, power generation, networking, and compute infrastructure.
US data centers are expected to require over 100 gigawatts of power within the next decade. Currently, the wait time for grid interconnection for new facilities ranges from six to ten years, creating a significant delay for developers.
Capital expenditure by major hyperscalers, including Microsoft, Google, Amazon, and Meta, is projected to reach $760 billion in 2026. This represents a nearly fourfold increase compared to the $200 billion spent in 2022.
Brookfield is actively investing in the sector and recently secured a $2 billion commitment from Nvidia as an anchor investor for its AI infrastructure fund. The firm manages assets across infrastructure, renewable energy, and real estate.
